1.
During the full life cycle of the project, a plot of the project’s expected expenditures will usually follow a characteristic ‘‘S’’ shape. This indicates that:
2.
A project manager is assigned to a project early in the project life cycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimate is considered to be rough estimates. The following table is the manager’s estimate of the cash flows that will take place over the next five years. What is the payback period for this project?
3.
A project manager is using the earned value reporting system to manage his project. At this point in time the EV is $24,000, the BAC is $97,000, the PV is $29,000, and the AC is $45,000. What is the percent complete?
4.
In a manufacturing facility that makes electronic widgets, the main widget making machine is getting old and a project is formed to consider the replacement of this machine. The average cost of the operations performed on this machine for making a widget is $5.00 per unit. A new machine can be purchased for $50,000 that will perform these operations much more quickly and with less scrap and rework for an average cost of $3.00 per unit. An alternative machine is even faster than the first machine considered and will perform the same operations for $2.00 per unit. However, this machine will cost $75,000. The company manufactures 1,000 widgets each month. What is the break even point for the $50,000 machine compared to the existing machine?
5.
The contingency budget will:
6.
The project manager of a project must buy a large piece of equipment costing $1,543,256. He meets with the accounting department representative to the project team and reviews the different depreciation methods that can be used to depreciate the equipment over the useful life of the equipment. Which of the following is an accelerated depreciation method?
7.
A project manager is assigned to a project early in the project life cycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimate is considered to be rough estimates. The following table is the manager’s estimate of the cash flows that will take place over the next five years. What is the net cash flow at the end of five years?
8.
One of the tasks that the person in the above project is assigned requires 100 hours of effort. What is the cost of the task?
9.
In a manufacturing facility that makes electronic widgets, the main widget making machine is getting old and a project is formed to consider the replacement of this machine. The average cost of the operations performed on this machine for making a widget is $5.00 per unit. A new machine can be purchased for $50,000 that will perform these operations much more quickly and with less scrap and rework for an average cost of $3.00 per unit. An alternative machine is even faster than the first machine considered and will perform the same operations for $2.00 per unit. However, this machine will cost $75,000. The company manufactures 1,000 widgets each month. What is the break even point for the $75,000 machine compared to the existing machine?
10.
A project manager is assigned to a project early in the project life cycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimate is considered to be rough estimates. The following table is the manager’s estimate of the cash flows that will take place over the next five years. If the net present value for each of the cash flows were calculated at a 10% interest rate, the net present value cash flow at the end of five years would be:
